Meanwhile, the Grey Market Premium (GMP) has continued to decline, dropping to 2.63% from a previous high of 7.52%, signalling a more cautious outlook for the stock’s listing gains.
The IPO has a price band of Rs 253 to Rs 266 per share, valuing the company at approximately Rs 5,300 crore. Notably, this is among the first public listings from a PSU-backed mutual fund in recent years, drawing attention due to Canara Robeco’s consistent performance and growth trajectory.
Canara Robeco AMC IPO Subscription Status:
According to BSE data, the Canara Robeco AMC IPO was 48% subscribed by the end of Day 2.
Retail Individual Investors (RIIs) drove the early momentum, subscribing to 74% of their allotted 1.74 crore shares.
Non-Institutional Investors (NIIs) subscribed to 53% of their reserved quota, which includes 74.78 lakh shares.
On the other hand, Qualified Institutional Buyers (QIBs) have yet to participate, with no bids submitted for their allocation of 99.70 lakh shares.
Canara Robeco AMC IPO GMP Today:
As of 13 October 2025, the Grey Market Premium (GMP) for the Canara Robeco IPO stands at Rs 7. Considering the upper price band of Rs 266, the expected listing price is around Rs 273, indicating a potential listing gain of about 2.63% per share.
Canara Robeco IPO Overview
Canara Robeco Asset Management’s IPO is a Rs 1,326 crore issue, consisting entirely of an offer for sale (OFS) of 4.99 crore equity shares.
The IPO subscription period began on 9 October 2025 and will close on 13 October 2025. The tentative allotment date is 14 October 2025 (Tuesday), with shares expected to be listed on the stock exchanges on 16 October 2025 (Thursday).
Should You Consider Subscribing?
Analysts generally have a positive outlook on Canara Robeco AMC’s long-term growth potential, although they caution that near-term returns may be modest due to prevailing challenges in the asset management industry.
In its pre-IPO review, InCred Research highlighted the company’s robust retail-oriented business model and consistent growth in assets under management (AUM) as significant strengths, positioning it as a compelling option among smaller asset management companies.
“At the upper price band of Rs 266, we believe the company has better re-rating potential compared to other PSU-backed peers, supported by its solid retail customer base,” the brokerage said.
While the IPO is considered fairly priced, experts recommend it mainly for investors with a long-term investment perspective rather than those seeking immediate listing gains.
Company Profile
As of FY25, Canara Robeco AMC manages an average AUM of Rs 1.03 lakh crore, maintaining a stable market share of 1.5%. The firm primarily focuses on active equity schemes, which constitute nearly 92% of its total AUM — with 80% in equity funds and 12% in hybrid funds.
Approximately 87% of its assets are sourced from retail and high-net-worth individual (HNI) investors, resulting in a sticky and diversified client base. The AMC also benefits from Canara Bank’s extensive branch network across India and Orix Corporation’s investment expertise, enabling it to balance growth ambitions with effective risk management.
Financial Highlights
Canara Robeco AMC has demonstrated steady financial growth, with net profit increasing from Rs 790 crore in FY23 to Rs 1,907 crore in FY25. Its revenue nearly doubled during this period, rising from Rs 2,046 crore to Rs 4,037 crore. The company boasts a strong return on equity (ROE) of 36.3%, comparable to top private-sector asset managers.
However, analysts observe that while the AMC’s focus on actively managed equity funds yields higher returns, it limits exposure to the rapidly expanding passive and ETF market segments.
Following the IPO, Canara Bank’s stake in the AMC will reduce from 51% to 38%. As per RBI regulations, this stake must be further brought down to 30% by FY30.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
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